Indian carmaker Mahindra & Mahindra is reportedly exploring alliance opportunities with PSA-Peugeot-Citroen and the Saab brand owner, NEVS.
The Indian newspaper Economic Times reported that Mahindra is taking into account partnerships with the two car brands as it is looking to offset slow sales in its home market by getting a stronger global presence. China’s National Electric Vehicle Sweden (NEVS), which bought bankrupt automaker Saab in 2012, said in August that it is in talks with two car firms whose names were not revealed to secure additional money.
NEVS won protection from creditors from a Swedish court last month while it finalizes its funding talks. Meanwhile, PSA is trying to find a way to return to the Indian market it quit in the 1990s. The carmaker planned to build a new factory in India in 2011 but dropped the scheme when it encountered financial difficulties.
The possibility of new alliance could help Mahindra & Mahindra, current owner of the Korean brand Ssangyong, increase its business in Europe and Russia.
Mahindra & Mahindra Executive Director Pawan Goenka said that “Several years back, before we took over Ssangyong, the brand (Ssangyong) was strong in Europe. Then it lost some of its strength during the financial difficulties of the company. Now it is on a recovery path.”